Forex eod strategy
Forex trading strategy - by Kevin Barry. The Forex trading strategy explained. Kevin Barry is an experienced and successful London Forex professional trader. He basically trades the major Forex pairs on 5min charts, using MACD histogram divergence signals and Pivot levels. Although this article was written by Kevin prior to his subsequent purchase of the MACDH divergence kitMACDH divergence signals were at the time available to him on 5min charts. Apply only to weekday data: With thanks to Kevin Barry for pivot logic. The grant of this license is for personal use only - no resale or repackaging allowed. All code remains the property of Jose Silva. For illustration purposes, I forex attached the chart from August 27thshowing the intraday pivot levels, together with the MACDH divergence signals numbered I only trade from the London open at Please excuse the dodgy artwork manual MACDH divergence signals! Click on charts to enlarge The 27th is pretty much a random choice of day. As I've mentioned earlier, the MACDH divergence signals generally work well in isolation but, perhaps, even better when combined with the pivot levels. In the main, I use a binary BB indicator and pivot levels, together with specific candlestick formations and MACD divergence for confirmation, for my trade entry. Once a pivot level is broken, I expect eod price to reach the next level. My profit objective is always two pivot levels away from my point of entry. Of course, I often miss out on very large price moves by capping my profits but, hey, my tastes are pretty simple. So, let's take a look at the MACDH divergence kit signals: Strong overhead resistance at M4 and 1. These signals are best ignored. Resistance at R1 and 1. A decent signal for a quick few pips maybe. However, IMO, we are too far away from a pivot level to consider entering a trade and the trend for the day is down. The best BB signal of the day was around As there was no significant confirmation, I would still have taken a long trade once the price broke back above M2, but with a reduced exposure. My target would have been M3, which had been providing support for most of the day, but watching closely for a reversal at the pivot eod, which is, in fact, what happened. Time to exit stage left at breakeven. The long MACDH divergence signal at As I mentioned, it just might have been worth a forex wager despite the lack of pivot level support. The break back down below S1 would most certainly have been the exit signal. There is nothing that unusual happening here, but you will get an idea of how a day often pans out. I use an hourly chart on the left, in order to get a feel strategy the general direction in which things are going, with the five minute chart on the right for the trade setup. I actually use my broker's one-minute chart in order to finesse the trade entry. As well as the manually plotted pivot levels, you can see the modified CS expert, a stochastic, the MACD spot divergence using that plot if you can! It's also worth mentioning that the FOREX market reopens on Sunday. Therefore, which HLC prices should be used for Monday's pivot levels? IMO, the Sunday eod is best ignored and Friday's prices used for Monday's pivots. A great signal yesterday, which I acted upon, pretty much paid for the package so I'm already ahead of the game! As I mentioned, I'll send you some proper results as time goes on. I only trade reversals. My two main reasons for doing so are that if you're correct you can catch most of a move rather than just part of it and, more importantly, every stop can be very tight because there is an obvious and logical place to put it; i. A few suggestions for forex If the trend resumes and hits your stop, just watch for a repeat of the set up and strategy it again. If you're trading stocks, watch out for a volume climax on the high or low of the reversal. If you see one, double your bet. Watch for a reversal at fib levels. Everybody else is watching them so you should too. The beauty of fibs and pivots is that they are amongst the few truly predictive indicators. Divergence between the price and the MACD. One of the very best ways of spotting an upcoming reversal. If you're too lazy like me to keep a watch for divergence, take a look at Jose's MACDH divergence kit. All the hard work is done for you. Trend following is only for the strategy. Last thought Another factor that I've omitted to mention that might be useful, could be the choice of the trading day on which the strategy would be executed. For example, a day on which several major economic events were due to occur could be a good candidate for trading. Also, after two or three days on which the market had been range-bound, is when a trending day is more likely to occur. Conversely, perhaps the day after a big trending day where there were no economic events of note due, would be a good day to avoid. Regards, Kevin Barry email address supplied on request.
As part of this process it left us on the team without a leader getting additional work shifted onto us.
It also draws from other related fields, such as sociology, anthropology, political science, and management.